AirAsia - Southeast Asia's Most Successful Low-cost Airline

The airline industry was not a good place to be in at that time, reeling as it was from the combined effects of the September 11 terrorist attacks, Severe Acute Respiratory Syndrome (SARS), and economic downturn.

However, within three years of operation, AirAsia changed the dynamics of the Asian airline industry. It not only managed to compete with major carriers like Malaysian Airlines (MAS) and Singapore International Airlines (SIA), but it also became the benchmark for several other low-cost airlines in that market. So great was AirAsia's impact that analysts said the airline, with its minimal fares, was living up to its tag line which said 'Now Everyone can Fly'.

It was his childhood dream to run an airline, but he did not consider the idea seriously until he saw easyJet, a London-based low cost airline, on television. Fernandes was impressed with what he saw of easyJet and decided that he wanted to explore its operations further. He spent two days at easyJet's headquarters in Luton airport, talking to staff and passengers and learning how the airline was run.

Fernandes had always believed that a low cost airline would be successful in the Southeast Asian region, and his experience at easyJet convinced him of the potential of his idea.